TEST 1 Problem The Black Company uses a job order cost system. The following data pertains to the direct material and direct labor costs charged to production during the month of January: Job number 663 664 665 666 Direct Material $3,200 7,800 9,000 3.500 $23.500 Direct Labor $4,000 9,600 12,000 5,400 $31.000 Job 663 was in process at the beginning of January at which time it had incurred $2.500 of direct material costs and $3,000 of direct labor costs. Manufacturing overhead is applied at the rate of 150 percent of direct labor costs. Raw materials purchased during the month amounted to $25,600. Raw materials on hand at the beginning of the month were $5,600. Raw materials requisitioned during the month amounted to $25,000. The factory payroll for the month amounted to $34,800. Manufacturing overhead for the month amounted to $46,900. Job 662 was completed during December at a cost $19,200, but was unsold on December 31. Jobs 663. 664. and 665 were completed during the month. Job 662, 663, and 664 were sold during the month for $98.500. Selling and administrative expenses for the month amounted to $13,400. Required: 1. Compute the following as of the end of the month: a. Materials inventory balance. b. Work in process. c. Finished goods. d. Cost of goods sold. e. Over-or-under applied overhead. 2. Prepare the necessary entries to record the following a. Purchase of materials. b. Requisition of materials. c. Factory payroll. d. Application of manufacturing overhead. e. Completion of Jobs 663, 664, and 665. f. Sale of Jobs 662, 663, and 664. f. Disposition of over-or-under applied overhead. Prepare an income statement for the month of January, including a cost of goods manufactured and sold